Docs Category: Business Continuity Planning

Understanding Xero Data Restoration: What You Need to Know

How Can I Restore My Data To Xero? We understand your question about restoring data, and we appreciate you bringing this up. It’s a valid question, but unfortunately, the expectation of a single-click restore to Xero is a myth, as Xero’s architecture doesn’t support such a feature. It’s not a simple, straightforward process like restoring a file on your computer. Understanding the Need for Data Restoration To give you a complete and accurate answer, we need to delve into the reasons why someone might want to restore data in the first place. This often stems from a situation where Xero is either offline or otherwise inaccessible. While the question appears simple, the various scenarios that might necessitate a “restore” are actually quite numerous, though thankfully, they are finite. Each scenario requires a different approach. Let’s expand on this paragraph to address the typical user scenarios and the issues with using “restore” in those situations, especially within an accounting context: To give you a complete and accurate answer, we need to delve into the reasons why someone might want to restore data in the first place. This often stems from a situation where Xero is either offline or otherwise inaccessible. However, users often desire a “restore” for reasons such as accidental data deletion, making mistakes and not knowing how to correct them, or simply wanting to revert to a previous state when unsure how to fix an issue. While these scenarios are understandable, attempting to “restore” data in these circumstances doesn’t align with sound accounting and auditing practices. Accounting records should reflect a chronological and auditable trail of transactions, not a series of rewinds. Imagine this: Multiple users are accessing and updating data in Xero simultaneously. If a “restore” were executed, how would each user know where they were in their workflow before the restore point? This would inevitably lead to errors and inaccurate financial records. Furthermore, Xero often integrates with numerous third-party applications, such as inventory control or e-commerce platforms, that feed transactions into Xero via the API. A “restore” would create a tangled web of inconsistencies, as these external systems wouldn’t automatically revert to the same point in time. Attempting to reconcile these discrepancies would be near impossible without manually revisiting each transaction posted in those add-ons, a foolhardy and error-prone undertaking. While the question appears simple, the various scenarios that might necessitate a “restore” are actually quite numerous, though thankfully, they are finite. Each scenario requires a different approach. In the context of financial accounting, a ‘restore’ is often not the correct approach.” The Concept of “Restore” and Business Continuity Planning (BCP) The term “restore” usually implies returning something to its original state. However, in the context of Xero and business continuity planning (BCP), we need to think more broadly. BCP encompasses planning for various disruptions to your business operations. In our case, this means ensuring the recoverability of your financial data held within Xero. Xero’s Approach to Data Management Let’s address your specific question about restoring back into Xero. Unfortunately, Xero itself does not offer a direct “restore” function in the way you might be thinking. They do not allow users to simply revert their Xero organisation to a previous point in time. This is a crucial point to understand. Think of it this way: Xero’s architecture is designed around continuous data updates and a single source of truth. They don’t maintain traditional backups that users can access and restore. Instead, they focus on data integrity and availability through their own internal systems and redundancy measures. Practical Options for Data Recovery So, if you can’t restore directly into Xero, what are your options if you lose access to your data or need to revert changes? That depends entirely on the specific situation. For example: Why Relying on Your Accounting Platform for Backups is Not Practical In today’s digital age, safeguarding your accounting data is paramount. While platforms like Xero do not offer built-in backup solutions, users often request this feature, believing it will solve their data backup requirements. However, relying solely on your accounting platform for backups can be impractical and risky. Let’s explore why you should consider third-party backup solutions to ensure your data’s safety and accessibility. A Real-Life Example: QuickBooks Online Backups Many Xero users point to QuickBooks Online, which allows users to back up their data to a local drive, as an example of why Xero should offer a similar feature. However, this seemingly convenient feature presents its own challenges. QuickBooks Online backups are typically saved in a proprietary format, which is not directly usable for recovery into another accounting platform. While QuickBooks Online does allow users to export certain data, such as reports and lists, to more open formats like Excel (CSV) files, this method may not cover all aspects of your accounting data comprehensively. It is also not an automated solution. In a true Disaster Recovery (DR) scenario, where you need to move to an alternative platform quickly, relying solely on these proprietary backups or limited exports can lead to significant delays and data loss. Therefore, even with a built-in backup feature, the lack of data portability due to proprietary formats can severely hinder your ability to recover your financial data effectively. For a more robust and flexible backup solution, considering third-party backup services that offer data in open formats is crucial. This ensures that your data remains accessible and usable, even if your primary accounting platform experiences an outage. The Limitations of Other Backup Services This brings us to an important point regarding other backup services. While these services can create copies of your Xero data, their ability to “restore” that data back into Xero is often misrepresented. They cannot directly restore data into Xero in the way a traditional restore operation works. Xero’s API (Application Programming Interface) does not allow third-party applications to post data directly to the Xero general ledger (journal). This is a critical limitation. Essentially, these services can provide you with a backup copy of your

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Universal Accounting Practices and the BCP Process

Three Commonly Asked Questions 1. Why is the BCP process to recover accounting data seemingly complicated? This question delves into the inherent complexities of recovering accounting data, regardless of the specific software used. It aims to highlight that the challenges are not solely due to Xero’s limitations or Control-C’s features, but rather stem from the fundamental principles of accounting and data integrity. Explanation: Recovering accounting data is not simply about restoring files; it involves ensuring the accuracy, completeness, and compliance of financial records. This requires careful consideration of: 2. What is an auditor’s perspective on Xero data backups, and do they advise their clients to use external backup providers as a Xero partner themselves? This question explores the awareness and practices of accounting professionals, specifically auditors, regarding Xero data protection and the role of external backup providers. It aims to uncover whether auditors actively advise their clients on the importance of independent backups, especially in light of Xero’s Terms of Use. Explanation: Auditors play a crucial role in ensuring the integrity and reliability of financial information. Their perspective on Xero data backups is essential for understanding: 3. Are alternative accounting packages bound by the same accounting practices and BCP guidelines as Xero when it comes to performing a data restoration, or are these restrictions specific to Xero? This question aims to dispel the misconception that switching to a different accounting platform might offer a simpler solution for data restoration. It emphasises that the fundamental principles of accounting and business continuity transcend specific software and that similar processes and considerations would likely apply regardless of the platform used. Explanation: While different accounting packages may have varying features and functionalities, they all operate within the same regulatory framework and accounting standards. This means that certain principles and guidelines are universally applicable, particularly when it comes to data restoration and business continuity. Therefore, switching to an alternative accounting package might not necessarily simplify the data restoration process or eliminate the need for a robust BCP. It’s crucial to recognise that the challenges and considerations are often inherent to the nature of accounting data and the regulatory environment, not specific to Xero. More on BCP Regarding alternative accounting packages, it’s important to note that the same accounting and BCP principles apply regardless of the platform used. While some platforms may offer more robust native backup and recovery features, relying solely on those features can still leave your business vulnerable. The Universal Truths of Accounting and BCP It’s crucial to understand that the fundamental principles of accounting and business continuity transcend specific software platforms. Whether you use Xero, QuickBooks, Sage, or any other accounting system, the same rules and best practices apply. Accounting Principles: Business Continuity Planning (BCP): Common BCP Trigger Scenarios: Conclusion Misconceptions About “Restore” Functionality: It’s a common misconception that all online accounting services offer a simple “restore” button to undo mistakes or recover from minor data loss. However, this is often not the case. Many platforms, including Xero, have limitations in their data restoration capabilities, especially when it comes to the Journal or General Ledger. Attempting to use a full data restoration to fix minor errors can lead to inconsistencies, compliance issues, and even violate accounting principles. It’s crucial to understand the proper accounting procedures for correcting errors, such as creating reversing entries or journal adjustments. Control-C: Your Partner in Data Protection and BCP Control-C empowers you with the tools and knowledge to protect your business data and maintain continuity. We offer comprehensive backups, swift recovery options, and expert guidance to help you navigate any data loss scenario. By understanding the universal principles of accounting and BCP, and by leveraging Control-C’s capabilities, you can ensure your business remains resilient and compliant, even in the face of unexpected disruptions.

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Xero Partners Clearly Lack their own BCP

No XPM Backup? No BCP. It’s that simple. The Absence of a BCP Reveals a Deeper Problem: Not having a Business Continuity Plan (BCP) in place isn’t just about lacking a backup. It raises a glaring red flag that you haven’t even considered the very real possibility of disruption to your business. In a tightly regulated industry like accounting, this oversight is not only unfathomable, but it’s also downright irresponsible. Bad stuff happens. Black swan moments are real. Think back to the COVID lockdowns – who could have predicted that? Or the recent CrowdStrike incident that sent shockwaves through the digital world. And now, the Xero outage, leaving countless businesses paralysed due to their reliance on a third-party provider. These are real-life events that most hadn’t even considered. These incidents underscore a critical point: your practice’s survival isn’t guaranteed. A BCP isn’t just a document; it’s a meticulously crafted strategy that involves identifying critical processes, assessing risks, and developing detailed procedures to maintain operations during disruptions. Without a BCP, you lack tested runbooks, leaving you scrambling and improvising in a crisis. This can lead to costly delays, errors, and further damage to your business. Many underestimate the far-reaching impact of downtime. Beyond lost revenue, consider the damage to client relationships, employee morale, and your hard-earned reputation. The stark reality is: a non-existent BCP leaves your practice vulnerable and unprepared. It’s not a matter of if a disaster will happen, but when. Furthermore, not having a backup of your Xero data is a direct violation of Xero’s Terms of Use. This puts you in breach of contract, potentially jeopardizing your access to the platform and exposing you to legal liabilities. Where is your compliance auditor in all of this? Are they aware of this blatant disregard for the very foundation of your business operations? The stark reality is: a non-existent BCP leaves your practice vulnerable and unprepared. It’s not a matter of if a disaster will happen, but when. It’s a matter of business survival. Ignoring the need for a BCP is like neglecting to wear a seatbelt while driving. It’s a calculated risk that could have devastating consequences. A BCP is your safety harness, protecting your practice from the unexpected. The consequences could be devastating, both for your clients and your practice. It’s time to take your business’s resilience seriously and invest in a robust BCP. Your practice’s future depends on it. It’s time to take action. Protect your livelihood. Secure your practice’s future. A reliable backup solution like Control-C isn’t just an option; it’s a necessity. Don’t wait for disaster to strike. Implement Control-C today and ensure your firm’s data is safeguarded. Sincerely, The Control-C Team

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“How Do I Restore My Xero Data?”

How to Restore Your Xero Data: A Deep Dive for Control-C Customers A very good question, and one that should be asked by anyone even vaguely concerned about their data. But let’s dig a bit deeper first and ask a couple of questions and make some observations. Understanding the Context Before delving into the complexities of data restoration and its implications for businesses, it’s important to understand your definition of “restore.” Let’s explore some scenarios that might trigger the need for data restoration in your Xero account: Additionally, let’s clarify what “restore” means in a business context: Assessing Your Scenarios and Xero’s Suitability Now, let’s consider whether staying with Xero is the best path forward for your recovery: If you’re unsure about Xero’s ability to safeguard your data and enable smooth recovery, exploring alternative accounting platforms might be prudent. Accounting and Auditing Considerations Data restoration, especially in accounting, has implications beyond mere technical recovery: “Restore” as a BCP Trigger Ideally, the need to “restore” Xero data should be a rare occurrence, triggered only by unforeseen events. A robust Business Continuity Plan (BCP) outlines procedures for handling such scenarios. “Restore” as a Business Continuity Strategy Finally, let’s reframe “restore” as part of your broader Business Continuity Plan (BCP). A well-defined BCP outlines how your business will continue to operate in the face of disruptions, including data loss. In conclusion, the ability to “restore” Xero data is crucial, but it’s just one piece of the puzzle. A comprehensive BCP, including regular backups with a solution like Control-C, is essential for protecting your business and ensuring continuity in the face of any disruption. Control-C is here to support you. Let me know if you have any further questions or would like to discuss your specific scenario in more detail! By proactively addressing data restoration as a critical component of your BCP, you can safeguard your business against unexpected disruptions and ensure its long-term resilience. Remember: Data restoration is not just a technical process; it’s a strategic decision with significant implications for your business. Approach it with caution, seek professional guidance, and always prioritise data integrity and compliance. Let’s work together to ensure your business can withstand any challenges that come your way.

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Data Restoration and ensuring Data Integrity

Introduction to Data Recovery in XeroRestoration of data directly into Xero is a complex issue. While there are claims in the market about restoring data, extensive testing has proven these claims to be false. Definition of “Restore” – means to bring something back to its original or former state. Restoring a Xero org to its original or former state is technically NOT possible. The word ‘restore’ in the following document simply means to push back data either via the standard Xero UI importing options available, and worst case, potentially through the API. There are limitations. Background: The ‘nitty gritty’ – Understanding the ‘Journal’ in Double-Entry Accounting The Journal is a critical component in a double-entry accounting system. It serves as the first place where transactions are recorded, using debit and credit entries. Maintaining its integrity is paramount because: Tampering with journal entries can lead to a drastic compromise of account integrity, potentially violating auditing standards. The Bitter Truth About Xero Restoration Xero’s API does not allow writing to the Journal, sometimes incorrectly referred to as the General Ledger, preventing a full restoration of accounting history. Attempting to alter past journal entries can lead to inconsistencies akin to revising history, which is against accounting principles and violates auditing standards. It is important to know that Xero have a daily limit on their API – this translates to “you can only push back or pull out so much data a day before the limit it hit. For example, if it takes 7 days to backup your Xero org (this is a common duration due to the daily data limit), it will take at least that plus more to push it back into Xero. This is not an acceptable Recovery Time Objective (RTO). Using our free application, Backapp offers a superior alternative that can reconstitute your financial records with a RTO of less than an hour (viewing within backapp), where others may take significantly longer, fail completely or yield inaccurate results. Our Recovery Point Objectives (RPO) are 24hrs, and a complete library for every day since you joined our service, for the lifetime of your subscription i.e. you could go back to day #1 or day #x. We also allow delta only downloads as well as daily full’s, should you need to see what changed on any given day. We retain a full history of all your backups. Manual Restore Procedure: Recovering from a Xero Organization Failure Should the need arise to restore data, we offer assistance in several key areas, handling specifics on a case-by-case basis. Our recommended strategy might involve steps such as starting a new Xero account using backed up opening/closing balances and importing critical elements like Contacts and Payables/Receivables, Chart of Accounts etc. This is only a guide to outline some high-level steps for manually restoring data after a Xero organization failure using Control-C backups. What you’ll need: Basic Steps: Business Continuity: Benefits of Including this in Your Business Continuity Plan (BCP): Conclusion and Next Steps Control-C provides a remedy that is both ethical and efficient. Although we cannot claim to restore data directly into Xero (technically not possible for anyone), our product and procedures offer a responsible way to mitigate the impact of data loss or user errors allowing you to import your data back into a new Xero org or another product. If you wish to discuss this further, or need assistance with a rescue plan (run-book) we would be happy to help. Transparency and safeguarding your financial data remain our top priorities. Like more information on our generic runbook for your BCP or data recovery? Disclaimer: This document is intended for informational purposes only and should not be construed as accounting advice. For specific accounting guidance, please consult with a qualified professional. We aim to provide a clear explanation for those curious about the intricacies of Xero data backups and the Journal, and why a seemingly simple “undo” function isn’t implemented.

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Xero Compliance Nightmare: Restoring Data Without the Journal

Definition of “Restore” – means to bring something back to its original or former state. The Bitter Truth: Xero Restoration is No Fairy Tale! Xero’s API, a tool used for data restoration, is like a picky eater with limitations. It can’t touch the heart of your accounting history – the Journal. This means restored transactions are incomplete, leaving a data ghost town with inconsistencies and missing pieces. Xero’s API, the key to data restoration, has glaring limitations. It is like a locked door with missing keys, deliberately, so you can’t touch the Journal/General Ledger, the crucial records of your accounting history. This leaves you with incomplete, fractured data, riddled with gaps and inconsistencies even after a ‘so called’ restoration. You cannot restore the Journal or General Ledger, for a very good reason. Accounting Integrity at Stake: Xero’s limitations go beyond inconvenience. Thinking that you can rewrite the Journal/General Ledger to fix errors? There is a valid reason why Xero’s API won’t let you write to the Journal or General Ledger. Accountants and auditors scream “no way!” It’s like revising history, compromising the integrity of your accounts and violating auditing standards. The right way? Reverse the mistake, redo it correctly, and maintain a clear, traceable record in the Journal/General Ledger. Accounting Rule 101. Why? There are several key reasons why altering the Journal or General Ledger (GL) of a double-entry accounting system is not recommended accounting or auditing practice: 1. Violation of Accounting Principles and Internal Controls: 2. Risk of Errors and Inconsistencies: 3. Ethical and Professional Considerations: 4. Alternative Solutions: Instead of altering the GL, there are proper ways to correct errors in double-entry accounting systems: Conclusion: Maintaining Trust and Accuracy in Your Financial Records In double-entry accounting systems, the Journal serves as the backbone of your financial history. Tampering with its entries, often referred to as the General Ledger, can be a risky and unethical practice. Here’s why: That’s why Xero, and most accounting software, don’t offer a simple “Undo,” “Restore,” or “Rewind” function for the Journal. While these features might seem convenient, they could compromise the historical record of your financial activity. Here’s the key point:Restoring deleted data doesn’t inherently bring back the original transaction dates. Your new Journal would reflect the date of the “restore” rather than the actual date the transaction occurred. This creates a misleading timeline and undermines the accuracy of your financial records. Recommended Approach: Accounting best practices emphasize maintaining a clear and auditable record. Instead of editing or removing entries, consider these alternatives: By following proper accounting procedures and controls, you ensure the integrity and reliability of your financial data, fostering trust and confidence in your financial reporting. Closing Note Xero’s ‘Terms of Use’ state that you should backup your data inputted into Xero. Regardless, backing up your data is good business practice and probably should be a part of your BCP (Business Continuity Plan) right. If you would like to learn more about a Business Continuity Plan (BCP) please complete the form below and we will contact you.

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Xero Data Loss: Why Restoration Isn’t Always the Answer

Introduction Navigating the intricacies of Xero data restoration can feel like traversing a complex maze. It’s not a simple “single-click” solution, and approaching it without the proper knowledge can lead to significant complications. This complexity isn’t due to shortcomings in Control-C’s capabilities, but rather stems from limitations within Xero itself. Understanding the Purpose of Restoration It’s crucial to recognize that data restoration isn’t a magic wand for undoing minor errors. If you’re looking to recover a deleted invoice or simply “roll back” changes, you’ll need to explore alternative solutions within Xero or consult with an accounting professional. Attempting a full data restoration for such scenarios could violate accounting and auditing principles, potentially compromising the integrity of your financial records. When Restoration is Necessary Data restoration is a powerful tool, but it’s primarily intended for significant data loss or corruption scenarios, such as those caused by cyberattacks, ransomware, or major system failures. In these situations, restoring from a secure backup can be the lifeline your business needs to recover and resume operations. Navigating the Complexities Data restoration requires a deep understanding of accounting principles, auditing standards, and Xero’s limitations. If you’re unsure about the process or its implications, seek guidance from our specialists or an experienced accountant. They can help you navigate the complexities and ensure your data is restored accurately and compliantly. Business Continuity Planning (BCP) Ideally, data restoration should be a rare event, triggered only by unforeseen circumstances. A well-defined BCP, which includes regular data backups and recovery testing, is essential for mitigating the impact of such events. Control-C can assist you in developing and implementing a robust BCP to safeguard your business against disruptions and ensure its long-term resilience.

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Leveraging Control-C Features for Business Continuity and Disaster Recovery

Introduction I wanted to take a moment to discuss how Control-C’s features, particularly our backup and restoration tools, can serve as an integral part of your Business Continuity Plan (BCP) in the event of a disaster recovery (DR) activation. Importance of Business Continuity In today’s fast-paced business environment, maintaining access to your accounting records swiftly during a failure with Xero is paramount. Control-C is designed to ensure that, in times of need, your financial data is readily available, allowing your business to continue operations without unnecessary delays. Utilising backapp for Data Recovery With our free backapp tool, you can recover and view all your financial data backed up from Xero. Here’s how it plays a crucial role in your BCP: Limitations to Consider While these tools are essential for maintaining business operations, it is important to understand certain limitations: Conclusion By integrating Control-C’s backup and data recovery features into your business continuity strategies, you can enhance your resilience in the face of potential disruptions. Quickly accessing and utilising your backed-up Xero data enables you to keep operations running smoothly while you navigate the complexities of migrating to a new accounting platform, should the need arise. Should you have any further questions or require assistance with utilising Control-C features for your BCP, please do not hesitate to reach out.

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Testing Backup Restoration Process to Xero

Introduction We often have customers reaching out to us asking “How do we do a test restore?” It’s great to see that you are prioritising your disaster recovery strategies. While it’s essential to ensure your backup system is functioning well, I want to clarify that performing a true restoration back to Xero can be complicated due to certain limitations within the Xero platform. Here’s how you can approach this testing effectively: 1. Testing Backup Validity: 2. Simulating Data Restoration: 3. Utilising Other Platforms for Testing: 4. Documenting the Process: 5. Reviewing Data Recovery Procedures: Conclusion: Although simulating a full restore to Xero is not practical, you can verify backup integrity and data alignment effectively through other means. By leveraging separate testing environments and thorough validation processes, you can demonstrate that your disaster recovery plan is solid and capable of addressing potential data loss scenarios. If you have any further questions or need additional guidance, please don’t hesitate to reach out!

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What Situations Might Warrant Execution Of The BCP?

Here’s an in-depth look at each situation that might warrant the exercise of a Business Continuity Plan (BCP) and related disaster recovery (DR) strategies: 1. Data Corruption or Loss Definition: Data corruption refers to errors in data that render it unusable or inaccurate, while data loss is the complete loss of data due to various factors. Considerations: 2. Service Downtime Definition: This refers to scenarios where the Xero platform is temporarily or permanently unavailable, hindering access to essential financial data. Considerations: 3. Platform Migration Definition: The decision to move away from Xero to another accounting platform due to business needs or dissatisfaction. Considerations: 4. User Errors Definition: Mistakes made by users that lead to incorrect data entries or financial records. Considerations: 5. Security Breach Definition: Unauthorised access to systems or data, potentially exposing sensitive financial information. Considerations: 6. Regulatory Compliance Failures Definition: Situations where a business fails to meet legal or financial reporting requirements set by government authorities. Considerations: By understanding and preparing for these scenarios, businesses can enhance their resilience, ensuring they can navigate disruptions effectively and maintain operational continuity.

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Continuity Plan (BCP) Guidance for Xero Users Utilising Control-C Backup Services**

Introduction As a user of Xero accounting software and a subscriber to Control-C backup services, it is essential to prioritise the development of a robust Business Continuity Plan (BCP) to ensure your business can effectively navigate potential disaster recovery (DR) events. This document outlines the key components of a BCP, the importance of effective recovery strategies, and why restoring data back to Xero may not always be the best solution, especially in the context of user errors and system compromises. Key Steps to Planning Your BCP Why Restoring Back to Xero May Not Be the Best Solution While it may seem intuitive to restore data back to Xero in the event of errors or data loss, there are several reasons why this may not be an effective approach: Conclusion By acknowledging the importance of a thoughtfully crafted BCP, Xero users can better prepare for a range of potential disaster recovery events. Additionally, recognizing that restoring data back to Xero is not always the right path forward when faced with user errors or system issues is crucial. Instead, focus on developing sound corrective practices and robust data management strategies to protect your financial integrity and ensure your business can swiftly navigate unforeseen challenges. Next Steps By taking these proactive steps, you are establishing a solid foundation for your business continuity and resilience against potential data-related challenges.

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